For the first time in 2025, the Fed has cut rates. That means two things for consumers: Borrowing will get cheaper, but savings returns won’t be as high. It will take time for either effect to take hold.

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On Wednesday, the Federal Open Market Committee (FOMC) cut the federal funds rate by 25 basis points, as expected, bringing the federal funds rate range to 4.00%-4.25%. The Fed last cut rates at its December 2024 meeting, following cuts at its two previous meetings. Throughout 2025, the federal funds rate has stood at 4.25%-4.50%.

Why cut rates now?

Fed Chair Jerome Powell called the trim a “risk-management cut,” in a press conference following the decision. When asked if a cut should have come sooner, Powell said, “We have to live life looking through the windshield rather than the rear-view mirror.”

For months, President Donald Trump has been pressuring the central bank to slash rates, but the Fed has firmly stated it bases its decisions on data and the broader economy. There are a few crucial elements that led to the rate cut, namely a steadily weakening labor market.

The FOMC indicated that cutting rates to cushion the labor market is a higher priority than tamping down lingering inflation, even with additional inflationary pressures looming. NerdWallet’s Senior Economist Elizabeth Renter says, “Rates are typically cut when the labor market is slowing, so this isn’t a sign of a strong economy, rather an attempt to ensure labor market cooling doesn’t worsen.”

Powell noted that the recent rises in prices are starting to put pressure on inflation, but the effects are limited thus far. He expects inflation to continue building. He also said that the labor market dynamics are largely being shaped by a shrinking labor force, largely due to current immigration policies combined with a sharp drop in labor demand. Current conditions are what Powell calls a “curious balance.”

“Typically when we say things are in balance, that sounds good, but in this case, the balance is because both supply and demand have come down quite sharply,” said Powell. “Now, demand is coming down a little more sharply because we now see the unemployment rate edging up.”

New FOMC member breaks ranks

There was one dissenting member of the FOMC — its newest member, Stephen Miran, who favored a 50 basis point cut. Miran, who was appointed on Monday, is taking an unpaid leave of absence from his position as chair of the White House Council of Economic Advisors so that he can serve on the Fed.

Renter says, “Though dissent at the FOMC isn’t unheard of, it is unusual, especially in recent history. But current economic conditions — and thus the proper course of action — are difficult to interpret, even without added political pressure. In other words, this FOMC at this point in time is ripe for some disagreements.”

What happens when there’s a rate cut?

A federal rate cut doesn’t automatically or immediately mean lower interest rates on financial products. Here’s what you may expect to happen:

It’ll be cheaper to borrow. When the Fed lowers the federal funds rate, banks will pay less to borrow from each other. The banks respond by lowering interest rates on loans. That includes credit cards, auto loans, mortgages, personal loans and more.

It’ll be cheaper to refinance. Lenders may trim rates for those looking to refinance an existing mortgage or other loan.

Saving will be less rewarding. Annual percentage yields will fall on common savings products like high-yield savings accounts, CDs and interest-bearing checking accounts.

Markets could fluctuate. Typically, cheaper borrowing tends to boost investor confidence and encourages businesses to expand, which leads to higher corporate profits. But if the rate cuts are perceived as a response to economic decline, then the markets could be more volatile. Immediately following the rate announcement, the markets fell, although the Dow’s slide was brief.

When it comes to consumer finances, Powell said, “Lower rates should support economic activity. I don’t know that one rate cut will have a visible effect on that, but over time, a strong economy with a strong labor market is what we’re aiming for.”

Will the Fed cut rates again?

It’s likely, but nothing is certain. Yes, that’s a vague answer, but it’s true.

Powell called all future decisions a “meeting-by-meeting situation.” He later added that the current situation is unusual since the economy isn’t what he would consider bad. He said, “It’s not incredibly obvious what to do.”

The FOMC dot plot indicates that more cuts are likely at its remaining meetings this year: Oct. 28-29 and Dec. 9-10. The futures market’s CME Fedwatch tool places strong odds of a rate cut at both meetings.

Anna Helhoski writes for NerdWallet. Email: anna@nerdwallet.com. Twitter: @AnnaHelhoski.

The article Fed Rate Trimmed: What Does It Mean For You? originally appeared on NerdWallet.

State law requires every school bus across New York to be powered by clean electric energy by 2035, and bans non-electric school bus purchases by 2027. Environmental advocates are pushing for a City Council hearing on the transition.

One of Consolidated Bus Transit’s many parking lots in East New York, Brooklyn.

Fall is officially here, and so are the yellow buses that take kids to and from school.

But these buses, which are mostly powered by fossil fuels, also emit the fumes that drive climate change and pollute the air. 

To change that, the state passed a law three years ago that requires every school bus across New York to be powered by clean electric energy by 2035. And starting in 2027, every new school bus purchased must be a zero-emission vehicle.

But only 68 school buses of the 10,500 in New York City’s fleet are currently electric, according to the city’s Department of Education.

Environmental groups fear that the city won’t meet the 2035 mandate as efforts to distribute funding have been slow. They say the public is being kept in the dark about the progress that has been made so far, and that more transparency is needed. 

“We have been consistently calling for an oversight hearing to take place at City Council this entire year, but it hasn’t happened yet,” said Lonnie Portis, director of policy and legislative affairs at WE ACT for Environmental Justice. 

“Oversight hearings are the best way to let the public and local stakeholders know what the current state of these electric school buses are,” Portis added. “Where are we in this process? How much money has been spent?” 

When it comes  to the money, New York City did secure a big chunk of funding from the federal government last March. At the time, Mayor Eric Adams announced that the $61.1 million grant from the U.S. Environmental Protection Agency (EPA) would put 180 new electric school buses into circulation. 

But the city’s Department of Education told City Limits that the funds are yet to be distributed, as it’s taken months for the Trump administration to release the funds. Only now is the money becoming available for school districts, the department noted. 

Bus production and infrastructure upgrades take time, but the department is hopeful that the full 180 electric buses will be added to the city’s fleet eventually.  

“We are always working with our vendors to ensure every student has access to reliable, high-quality transportation that keeps them healthy and supports our environmental future,” a spokesperson for the DOE  said in an email.

“Protecting our students’ health and well-being is our top priority, and electrifying our school bus fleet advances this commitment by eliminating harmful emissions and creating quieter, healthier rides that supports better learning environments.” 

Still, environmental advocates fear funds for electric school buses will dry up under Trump, as his administration has not had the best track record when it comes to electrification efforts.

Since starting his second term in office, Trump has shown disdain for cleaner ways to generate energy, like wind and solar power. This year, the president suspended new leasing and permitting for offshore wind projects and rescinded Biden-era tax credits that helped fund the clean energy transition.

Mayor Eric Adams at a press conference last year announcing funding for more electric school buses via the Biden administration. ( Ed Reed/Mayoral Photography Office)

“This new federal administration is rolling back environmental protections and regulations and it’s playing a dangerous game,” said Kevin Garcia, senior transportation planner at the non-profit New York City Environmental Justice Alliance.

“So we need the city and state to take real bold climate action in order to make sure that they’re still improving air quality and protecting communities across New York,” Garcia added. 

On the state level, New York has managed to secure $500 million for school bus electrification through the Environmental Bond Act, which New York voters approved in 2022. But accessing the money has proven difficult as not many school districts know how to apply for the funds. 

The money is distributed through a voucher-based initiative run by the New York State Energy Research and Development Authority (NYSERDA). New York K-12 public school districts and third-party bus operators that are under contract with them can apply for the incentive and receive discounts when they purchase zero-emission buses.

While NYSERDA has been providing informational webinars on everything there is to know about electric school buses and applying for these vouchers, environmental advocates say more outreach is needed.

When it comes to applying for the electric school bus incentives, most school districts “just don’t know where to start,” said Suhali Mendez, policy and legislative coordinator at New York Lawyers for the Public Interest (NYLPI).

“I think a lot of the reason that there aren’t enough out there has to do with lack of information,” Mendez added. “We definitely still have a long way to go before meeting our electric school bus goals.”

To reach the reporter behind this story, contact Mariana@citylimits.org. To reach the editor, contact Jeanmarie@citylimits.org

Want to republish this story? Find City Limits’ reprint policy here.

The post Tens of Thousands of School Buses Are Back On NYC Streets. Only 68 Are Electric. appeared first on City Limits.

El plan de deportaciones masivas de la administración Trump está alimentando el miedo y aumentando la demanda de servicios de salud mental entre los inmigrantes de Nueva York, que ya se enfrentan a obstáculos para recibir atención, según afirmaron funcionarios y defensores en una audiencia del Concejo celebrada la semana pasada. 

La presidenta del Comité de Inmigración del Concejo Municipal, Alexa Avilés, en la audiencia, donde dijo que la administración “habla mucho y no hace nada”, mientras los inmigrantes están siendo arrestados. (John McCarten/NYC Council Media Unit)

Este artículo se publicó originalmente en inglés el 18 de septiembre. Traducido por Daniel Parra. Read the English version here.

El plan de deportaciones masivas de la administración Trump está alimentando el miedo y aumentando la demanda de servicios de salud mental entre los inmigrantes de Nueva York, que ya se enfrentan a obstáculos para recibir atención, según afirmaron funcionarios y defensores en una audiencia del Concejo celebrada la semana pasada. 

En una audiencia del Concejo Municipal celebrada la semana pasada, los defensores de los derechos de los inmigrantes afirmaron que no solo han observado ese cambio, sino también el impacto psicológico que está teniendo en las comunidades de inmigrantes de toda la ciudad, lo que pone de relieve la gran necesidad de acceder a servicios de salud mental culturalmente competentes.

Charles Brown, director del programa legal de inmigración de Lutheran Social Services of New York, dijo que el mes pasado habían ayudado a 83 migrantes. “Casi todas esas 83 personas necesitaban servicios de salud mental. Casi todas nos dijeron que no creían que pudieran acceder a esos servicios”, afirmó Brown.

Aún así, los líderes de dos organismos municipales invitados por los legisladores a testificar y responder a preguntas en la audiencia no se presentaron.

Alexa Avilés, presidenta del Comité de Inmigración del Concejo, criticó la ausencia tanto de los responsables de la Oficina de la Alcaldía para Asuntos del Inmigrante (MOIA por sus siglas en inglés) como del Departamento de Salud e Higiene Mental (DOHMH por sus siglas en inglés). Ambas agencias enviaron a miembros de su personal en su lugar.

Aludiendo a la ausencia de los líderes de la administración Adams en otra audiencia sobre el impacto de los recortes presupuestarios de Donald Trump el día anterior, Avilés expresó su decepción. “Sigo ofendida por la hipocresía de esta administración hacia las comunidades de inmigrantes y por el hecho de que hablan mucho y no actúan”, afirmó.

El acceso a los servicios de salud mental es un problema para los neoyorquinos en general, y para los inmigrantes es aún más difícil. Según un informe del DOHMH publicado en mayo, alrededor de neoyorquinos (o el 14 por ciento de la población) declararon tener dificultades para acceder al tratamiento de salud mental que necesitaban, ya fuera a través de asesoramiento o medicación.

Uno de los problemas, explica el informe, es que puede resultar difícil encontrar un proveedor que hable el idioma preferido de la persona o comprenda su cultura.

Otro informe publicado este año por el DOHMH y el MOIA reveló que los inmigrantes con depresión son menos propensos a recibir tratamiento de salud mental (34 por ciento) en comparación con los neoyorquinos nacidos en Estados Unidos con depresión (48 por ciento).

Algunos de los retos a los que se enfrentan los inmigrantes y que pueden contribuir a sus problemas de salud mental son las barreras lingüísticas, los traumas sufridos antes, durante o después de la migración y la inestabilidad económica, explicaron los defensores en la audiencia.

“De hecho, muchos de nuestros clientes llegan a Estados Unidos después de sufrir traumas importantes en su país de origen y durante su viaje hasta aquí, y se encuentran en la ciudad de Nueva York con problemas de salud mental derivados de sus experiencias”, dijo Brown. “Una vez que llegan, los migrantes se ven sometidos a un complejo sistema de inmigración que puede parecer diseñado para volver a traumatizarlos”.

Desde la primavera de 2022, cientos de miles de migrantes han llegado a la ciudad de Nueva York. Aunque el número de recién llegados ha disminuido significativamente en los últimos meses, más de 34.000 permanecían en el sistema de refugios de la ciudad en agosto. 

Los adultos inmigrantes son casi dos veces más propensos que los adultos nacidos en el país a no tener seguro médico, según el informe del MOIA/DOHMH. El mes pasado, The City informó que las inscripciones en NYC Care, el programa de acceso a la asistencia sanitaria de la ciudad para residentes con bajos ingresos —independientemente de su situación migratoria—, disminuyeron por primera vez este año desde su puesta en marcha en 2019.

En la audiencia, los funcionarios dijeron que los neoyorquinos en crisis pueden acceder a algunos servicios mediante una llamada, un mensaje de texto o un chat al teléfono de ayuda para suicidios y crisis 988, que combina la atención y los recursos locales “con las normas y mejores prácticas nacionales”, según explica su sitio web.

Avilés criticó los largos tiempos de espera para comunicarse con la línea 988, así como lo que describió como la falta de preparación de la administración para lidiar con los problemas que afectan a las comunidades de inmigrantes.

La concejal Tiffany Caban fue una de las varias personas detenidas el jueves por protestar contra el ICE frente al 26 Federal Plaza (Winnie Marion)

Los agentes del ICE han estado deteniendo a personas que acuden a las audiencias de inmigración en el 26 Federal Plaza de Manhattan, donde, según los críticos, los migrantes están recluidos en condiciones de hacinamiento e insalubridad. Casi una docena de legisladores fueron detenidos el jueves durante una protesta contra ICE.

“Sabemos que la administración Trump está tomando un camino claro hacia la violencia y que el alcalde no se está oponiendo a ello”, dijo Avilés en la audiencia.

La demanda de servicios de salud mental es inmensa, según los defensores, y los funcionarios municipales lo reconocieron. Los funcionarios testificaron que la línea directa general de MOIA ha recibido miles de llamadas este año, muchas de ellas con preguntas sobre salud, incluidas docenas sobre salud mental específicamente.

Un miembro del personal del Arab American Family Support Center, una organización sin ánimo de lucro que presta servicios a inmigrantes y refugiados árabes, de Oriente Medio, musulmanes y del sur de Asia, dijo que el número de solicitudes que han recibido de personas que buscan ayuda en materia de salud mental ha aumentado un 80 por ciento en los últimos meses.

Según los defensores que testificaron e instaron a la ciudad a financiar una plantilla sanitaria para inmigrantes, también hay una falta de trabajadores cualificados en la ciudad para satisfacer la demanda.

Un médico especialista en salud mental y supervisor del Centro de Apoyo a las Familias Árabe-Americanas pidió a las autoridades que “desarrollaran una mano de obra con competencias lingüísticas mediante la creación de vías y programas acelerados que capaciten a los inmigrantes cualificados para servir a sus propias comunidades”. 

Para ponerse en contacto con el reportero de esta noticia, escriba a Daniel@citylimits.org. Para ponerse en contacto con la editora, escriba a Jeanmarie@citylimits.org.

The post Ofensiva federal está afectando salud mental de inmigrantes neoyorquinos, afirman funcionarios y defensores appeared first on City Limits.

BEIJING (AP) — The United States and China are “talking past each other” on key issues, according to a U.S. lawmaker leading a bipartisan congressional delegation visiting Beijing on Tuesday — the first visit from the House of Representatives to China since 2019.

Led by Rep. Adam Smith, a Democrat on the House Armed Services Committee, the visit comes as tensions have risen between the two countries over trade, technology and opposing views on global conflicts.

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The aim of the trip, Smith said, is to increase dialogue between the two sides.

“You have to be willing to start the process of saying, ‘Okay, this is where I’m coming from, where are you coming from?’ And we’re not even at that point yet. We’re still sort of talking past each other,” Smith said Tuesday.

The U.S. delegation said it hoped China would take meaningful action to reduce the inflow of fentanyl into the U.S. and they expressed concern over China’s restrictions on the global supply of rare earths, according to a readout from the House Armed Services Committee on Monday.

Smith also said Tuesday he is concerned that the U.S. and Chinese militaries are coming too close to each other operationally, and that he wants the Chinese side to engage in more dialogue.

“We’ve seen this with our ships and our planes, their ships, their planes, coming entirely too close to one another,” he told reporters. “At the height of the Cold War, we had regular conversations, regular treaties with the Soviet Union.”

In October 2023, the U.S. military said that a Chinese fighter jet came within 10 feet of an American bomber over the South China Sea.

Smith added he hoped for more engagement overall with Beijing.

U.S. Rep. Adam Smith, D-Wash, center, speaks during a press conference at the U.S. Embassy in Beijing, China, Tuesday, Sept. 23, 2025. (AP Photo/Mahesh Kumar A.)

“Many things that seemed intractable and impossible — once you actually start talking from the standpoint of ‘Let’s try and resolve this’ — it is unbelievable what you can accomplish,” he said.

Smith and Chinese Foreign Minister Wang Yi struck a warmer tone during a meeting later Tuesday, with Wang telling Smith that China’s door was always open to him.

Smith said he saw room for cooperation between the U.S. and China on issues such as combating poverty and public health crises.

“There are many things that we can work together on because the capabilities of China, the capabilities of the U.S. are the greatest in the world,” Smith said. “If we work together, there’s no end of the things that we can accomplish.”

Since arriving on Sunday, the delegation met with several top Chinese officials, including Premier Li Qiang, Defense Minister Dong Jun, Vice Premier He Lifeng and National People’s Congress Chairman Zhao Leji.

The U.S. and Chinese militaries suspended communications with each other for over a year starting in August 2022, following a visit by then-U.S. House Speaker Nancy Pelosi to Taiwan. The visit angered Beijing, which claims self-ruled Taiwan as its own territory, to be annexed by force if necessary.

A group of U.S. senators visited Beijing in 2023.

China and the U.S. restored military dialogue in November 2023 after a rare meeting between Chinese President Xi Jinping and then-U.S. President Joe Biden.

But it is unclear how regularly the two militaries have communicated with each other and Smith did not address the frequency in response to reporters’ questions on Tuesday.

President Donald Trump said he would meet with Xi at a regional summit in South Korea in late October and visit China in the “early part of next year,” following a lengthy phone call between the two on Friday.

The congressional delegation to China also includes Michael Baumgartner, a Republican member of the House Foreign Affairs Committee, as well as Ro Khanna and Chrissy Houlahan, both Democrats on the House Armed Services Committee. The lawmakers are in China until Thursday.